The office will be headed by senior advisers Jean Pierre Çarçabal and Malcolm McDowell.

Çarçabal was previously a partner at Blevins Franks in France, while McDowell is a pensions and lifetime allowance specialist having worked in the US, Middle East and Europe.

This hub is expected to widen Chase Buchanan’s reach and to help give more UK nationals to access advice when moving to a country with a different tax regime.

McDowell said: “Chase Buchanan’s emphasis on personal relationships, truly tailored advice and fostering long-term dialogues to support and assist clients through each stage of life overseas is cohesive with my personal approach to wealth management and financial advice, streamlining the complexity of tax planning and portfolio management.”

Çarçabal added: “I am delighted to be joining Chase Buchanan and to be part of this new team in Bordeaux, combining skill, insight and in-depth understanding of the tax regimes, investment landscapes and financial sectors in France and varied locations across Europe.”

On 27 June 2023, UK chancellor of the exchequer Jeremy Hunt signed an agreement financial services cooperation with EU commissioner Mairead McGuinness to establish a “constructive, mutually beneficial relationship between the UK and the EU in financial services”.

The Memorandum of Understanding (MoU) signifies an important step in UK/EU relations post-Brexit. The agreement will establish an ongoing forum for the UK and the EU to discuss voluntary regulatory cooperation on financial services issues.

Hunt said: “The UK and EU’s financial markets are deeply interconnected and building a constructive, voluntary relationship is of mutual benefit to us both.

“In the UK, our financial services sector is a true British success story. Together with the related professional services sector, it was worth £275bn ($348bn, €319bn) last year, making up an estimated 12% of the British economy.

“This agreement with our European partners as sovereign equals builds on our arrangements with the US, Japan and Singapore, helping to support the sector’s role as a global financial services hub.”

Expat advice market reaction

The concept of passporting was a big loss for the expat advice market in Europe – and Brexit itself left many expats asking questions no one knew the answers to.

However, do firms believe the MoU will be a good thing for cross-border advice?

David Vacani, principal at Beacon Global Wealth Management, said: “Any increase in cooperation between the UK and EU is to be welcomed. Hopefully we can build on this new framework and get agreement in many other areas of financial services. We will have to wait and see what impact this voluntary arrangement has on UK expats, but it is a positive move forward.”

Lee Eldridge, group chief executive at Chase Buchanan, said: “Aligned regulation can almost always be a positive for investors, this agreement between the UK and EU provides an extra step to help the financial services sector in the UK return to the alignment we witnessed pre-Brexit.

“The previous cross-border understanding and regulatory cooperation could be advantageous for investors and UK expats living in the EU and will provide assurance for the UK financial sector, which is the stalwart of the British economy.”

John Westwood, group chairman at Blacktower, said: “The signed deal between the UK and the EU on financial services cooperation is expected to have a significant impact for both the UK and UK expats. The agreement signifies a constructive and mutually beneficial relationship between the UK and the EU in the financial services sector. Given the deep interconnection between their financial markets, establishing cooperation is in the best interest of both parties.

“It is likely to have a positive impact on the UK’s financial services industry, ensuring continued access to EU markets and fostering stability and growth. Additionally, UK expats who work in the financial services sector may benefit from the increased cooperation and coordination between the UK and the EU, which could lead to enhanced opportunities and protections for them.”

Jason Porter, business development director at Blevins Franks, added: “While the MoU is a welcome commitment from both sides and should result in closer ties between both sides, we shouldn’t kid ourselves and think ‘passporting’ is on the agenda.

“It does not even mean the 40-odd different areas of equivalence the UK could negotiate with the EU are formally under discussion. It does not create a framework for UK investment managers and financial advisers operating in the EU and vice versa.”

The Socialist Party has made a few changes to their original plan, which is a significant u-turn from their initial idea to scrap the programme in February 2023.

The revised proposal includes that investments of a real estate nature and capital investment through deposits and similar instruments will not be eligible for the golden visa.

However, the government proposes to maintain the following investment options:

• Job creation options (with or without company creation) for a minimum of 10 jobs;
• Investment in scientific research – €500,000 (£393,000, $458,000);
• Investment in cultural/artistic areas – €250,000;
• Venture capital funds – €500,000; or
• Business ventures that maintains or creates five jobs.

The vote on the proposal is expected to be scheduled in the coming days, with indications pointing towards 19 July as the likely date.

John Westwood, chairman of Blacktower, said: “It’s interesting to see the Portuguese Socialist Party proposing to keep the Golden Visa program despite initial plans to make significant changes. It seems they have found a middle ground by eliminating real estate and certain capital investments as eligible options. The proposed changes, particularly the elimination of real estate as an eligible investment option, is likely to impact wealth management strategies for individuals seeking to obtain residency through investment.

“By removing real estate as an investment option for the Golden Visa, the Portuguese government is likely aiming to address concerns about rising housing prices and the impact on local communities. While this is much needed for local residents, the emphasis on job creation and investment in scientific or cultural areas in the revised Golden Visa proposal indicates a potential shift in investment strategies for wealth managers. They may need to assist clients in identifying and evaluating opportunities in these sectors to meet the program’s requirements.”

‘Left in the dark’

Jason Porter, business development director at Blevins Franks, said: “The February announcement to bring an end to the Portuguese golden visa programme was purely that – an announcement – the lack of any wider explanation or detail meant advisers were left somewhat in the dark.

“If this rumour proves true, then it appears the programme might remain in some shape or form.”

Patricia Casaburi, managing director at Global Citizen Solutions, added: “I am pleased to see that the recent revision of the bill proposal, which initially aimed to abolish the Portuguese golden visa programme, has now been amended.

“In essence, the current understanding suggests that the golden visa programme will be retained, albeit without real estate and investments in instruments like deposits. Instead, the government proposes to maintain the investment in job creation, scientific research, cultural investments and venture capital funds.

“This decision signifies the recognition of the immense value this program holds and there is still much to be explored and harnessed, as it continues to bring significant economic benefits to Portugal.”

Robert Webb, private wealth manager for Portugal at Chase Buchanan, added: This proposed amendment makes perfect sense. One of the main reasons for the initial golden visa abolition was the impact it was having on Portuguese property prices. Removing property is likely to be welcomed internally but still leaves incomers with golden visas on proposed limited choices, though D2 and D7 visa options are still fully available.

“The impact on immigration numbers is likely to be small but there is still a small window open during which golden visa applications can be made using the current conditions. Those looking at golden visas must act quickly.”

EU crackdown

In February 2023, the Irish government approved the closure of its immigrant investor programme (IIP) to further applications.

But overall, this comes many months after members of the European Parliament (MEPs) overwhelmingly decided to demand a ban on golden passports.

The vote – which saw 595 in favour, 12 against and 74 abstentions – followed commitments by the European Commission, France, Italy, Germany, the UK, Canada and the US to limit wealthy Russians with links to the government from accessing golden passports.

The European Parliament deemed citizenship-by-investment schemes as “objectionable from an ethical, legal and economic point of view and pose several serious security risks”.

There are still a handful of EU countries with golden visa schemes such as Malta, but the European Parliament is continuing to crackdown on the schemes.

Then they had to get their heads round a whole new set of immigration rules, before they could even start a new life in Europe.

But according to Euronews, rules around long-term residency and moving around the bloc could be simpler in 2024.

The EU reportedly wants to make it easier for non-EU residents to move around the bloc in the future. It is also aiming to cut the time you need to live in a member state before gaining long-term residence status to three from five years.

The report said that the European Parliament have made their position clear but now EU governments will need to agree and negotiate to finalise the changes to the law. It is hoped that the new legislation will be completed by February 2024 – before the next European Parliament elections.

David Vacani, principal at Beacon Global Wealth Management, said: “Any way of simplifying the complicated and confusing laws around EU residency is very much to be welcomed. The ability to move around EU states after a shorter time period for a non- EU resident would be a great step forward in recognising their contribution to the EU.”

Jason Porter, business development director at Blevins Franks, added: “These proposed changes will be gratefully received and provide reassurance that we are still very welcome on the other side of the channel. The fact the permit processing time for the proposed single EU residency permit is restricted to 90 days, and the three-year permanent resident permit to 60 days, if enforced, should mean much quicker turnaround times.”

UK expats

After Brexit eventually happened, the UK nationals became non-EU residents – which made moving to the country a little more difficult.

But this could be a good sign for potential expats looking to move to Spain or Portugal.

Porter said: “Most British expatriates who are retiring to Europe choose where they want to live more on the basis of where they are attracted to rather than which is the best financially or from the perspective of tax.

“But these rules will allow those that require it greater flexibility in moving from one member state to another perhaps to plan for certain events such as a business sale.

“The fact this could include being able to leave the EU for up to 24 consecutive months without losing their status will also be attractive.”

Lee Eldridge, group chief executive of Chase Buchanan, said: “This change, making it easier to move to a European Union country, is welcome news. Particularly since Brexit and the end of freedom of movement. However, when someone decides to move to a new country; as well as where they live and possibly work, there are lots of financial considerations to make such as transferring their pension, taxes and which country to make tax payments in and inheritance planning.

However, a good international finance adviser with UK and local tax and pensions knowledge can make the move easier for them. Professional financial advice should always be sought.”

Only 16% of non-advised UK adults see financial advisers as being the ‘most trusted’ with that figure doubling among advised adults.

A lack of trust of financial advisers is a “significant issue for the public at large”, Alex Ingrim, senior investment analyst at Chase Buchanan told International Adviser. People are reluctant to engage with advisers causing them to take a ‘DIY’ approach when it comes to saving, investing and retirement planning.

This can lead to serious mistakes being made to their financial futures. Stuart Ritchie, GSB Capital managing partner, warned: “I can see this potentially exacerbating with tools like ChatGPT.”

Historically, the industry had been built around a sales process and renumeration through commission. Which Ingrim suggests is what has caused the scepticism towards advisers.

Ritchie highlighted that many people in the UAE have also had bad experiences with advisers, further fuelling distrust of the industry.

He said: “Normally people have been sold products that are unsuitable, however the poor victim finds this out much later down the line and typically, by then, the adviser has disappeared off into the sunset having banked a large up-front commission on day one.”

Boring Money chief executive Holly Mackay added: “A lack of clarity about the benefits of financial planning, combined with opacity around charging, are key contributors to a lingering sense of suspicion about the profession.”

Long term decline

A host of bad experiences has led to fewer people approaching advisers, ultimately causing them to lose out financially long term.

According to the Boring Money data, since 2021, there has been a 9% decline in the number of UK adults reporting that they would go to a financial adviser.

The decline in use of IFAs has created a barrier to a greater adoption of advice in the UK.

To bring this barrier down, Ingrim believes that the industry needs to communicate better with clients about how things have changed in the past decade.

“Our industry should promote ourselves to the public as a new generation of service provider on par with other professionals like lawyers and accountants,” Ingrim added. “Clients need to be made aware that business models, educational standards and service offerings have changed to mirror other industries held in high regard.”

One way that the industry can improve its image is to uphold a level of professionalism.

Sally Plant, assistant director of financial planning and education development at Chartered Institute of Securities and Investment (CISI), said: “As a professional body we set standards and ensure these standards continue to be met. Whether that be assessing initial competence via exams, online learning, professional assessments or by providing a varied and stimulating CPD programme to ensure these skills and knowledge are update to date and relevant.”

Financial education

GSB’s Ritchie thinks that more education needs to be provided so that people can be better informed about the industry and what advisers can do for them.

He said: “Advisers should spend time in schools helping educate the next generation as well as providing education on the benefits that ‘real’ cash-flow modelling can bring to all of us.”

The Money & Pensions Service (Maps) published survey results on 14 June showing that only 47% of children have received a meaningful financial education at home or at school.

By providing people with a better understanding of what advisers do, and the benefits that they can bring to their finances, it can go some way towards building up trust between clients and advisers.

Ingrim emphasises how crucial transparency is to building better client relationships at Chase Buchanan.

He said: “We want our clients to understand that as a business we have a responsibility to be both fair and profitable with our charging structure. After all, no client wants to work with a failing advisory firm.”

Similarly, Ritchie explained that his firm clearly defines “the process that clients will go through in financial planning and what they can expect to receive,” to help create a trustworthy rapport with clients.

Providing transparency and better education on the financial advice industry can help to de-mystify the profession and highlight the many positives that advisers can provide to people’s finances.